Federal-Provincial Fiscal Arrangements Act

Marginal note:Fiscal equalization amount

• 3.72 (1) For the purpose of this section and section 3.71, the fiscal equalization amount for a province for a fiscal year is the average of

  • (a) the greater of zero and the amount determined by the formula

    (A - B) × C

    where

    A

    is the per capita equalization standard for that fiscal year,

    B

    is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year, and

    C

    is the average annual population of that province for that fiscal year, and

  • (b) the amount determined by the formula

    D × [(E - F) × G] / H

    where

    D

    is

    • (a) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and

    • (b) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035,

    E

    is the five-province per capita equalization standard for that fiscal year determined under subsection (3),

    F

    is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,

    G

    is the average annual population of that province for that fiscal year, and

    H

    is the aggregate of the amount for each of the provinces determined by the formula

    (I - J) × K

    where

    I

    is the five-province per capita equalization standard for that fiscal year determined under subsection (3),

    J

    is the aggregate of the average annual per capita yield in the province for each revenue source for that fiscal year, and

    K

    is the average annual population of the province for that fiscal year.

• Marginal note:Clarification — paragraph (1)(a)

  (2) For the purposes of paragraph (1)(a), the Minister shall determine the per capita equalization standard for a fiscal year by computing the fiscal equalization amount for each province for that fiscal year in the manner described in that paragraph and shall, in making that determination, ensure that

  • (a) the amount determined by the following formula would be the same with respect to every province for which a fiscal equalization amount is greater than zero:

    A + (B / C)

    where

    A

    is the aggregate of the average annual per capita yield in that province for each revenue source for that fiscal year,

    B

    is the fiscal equalization amount for that province for that fiscal year, and

    C

    is the average annual population of that province for that fiscal year; and

  • (b) the aggregate of the fiscal equalization amounts for all provinces for which the fiscal equalization amount is greater than zero for that fiscal year would be equal to

    • (i) for the fiscal year beginning on April 1, 2006, the product obtained by multiplying $10,900,000,000 by 1.035, and

    • (ii) for each subsequent fiscal year, the product obtained by multiplying the amount computed for the immediately preceding fiscal year by 1.035.

• Marginal note:Clarification — paragraph (1)(b)

  (3) For the purposes of paragraph (1)(b),

  • (a) the five-province per capita equalization standard for a fiscal year is the amount determined by the formula

    (A + B + C + D + E ) / F

    where

    A

    is the product of the average annual population of Ontario for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Ontario for that fiscal year,

    B

    is the product of the average annual population of Quebec for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Quebec for that fiscal year,

    C

    is the product of the average annual population of Manitoba for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Manitoba for that fiscal year,

    D

    is the product of the average annual population of British Columbia for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of British Columbia for that fiscal year,

    E

    is the product of the average annual population of Saskatchewan for that fiscal year and the aggregate of the average annual per capita yield for each revenue source in respect of Saskatchewan for that fiscal year, and

    F

    is the aggregate of the average annual population for that fiscal year of Ontario, Quebec, Manitoba, British Columbia and Saskatchewan;

  • (b) if, for a province, the value determined for F in paragraph (1)(b) is greater than the value determined for E in that paragraph, the difference between those values in relation to that province is deemed to be zero; and

  • (c) if, for a province, the value determined for J in the description of H in paragraph (1)(b) is greater than the value determined for I in that description, the difference between those values in relation to that province is deemed to be zero.

• Marginal note:Adjustment of revenue to be equalized

  (4) Subject to subsections (5) and (6), if, for a fiscal year, the fiscal equalization amount for a province determined under subsection (1) is greater than zero and that province has seventy per cent or more of the average annual revenue base for all of the provinces in that fiscal year in respect of a revenue source, the revenue to be equalized from that revenue source for all of the provinces for the purpose of determining the average annual per capita yield for each province for that revenue source for that fiscal year is an amount equal to seventy per cent of the revenue to be equalized as otherwise determined from that revenue source for all of the provinces for each of the three immediately preceding fiscal years.

• Marginal note:Nova Scotia

  (5) For the purpose of calculating the additional fiscal equalization payment that may be paid to Nova Scotia under subsection 3.71(1),

  • (a) subsection (4) applies to Nova Scotia in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection 3.9(1) only for those fiscal years in the period referred to in subsection 3.71(2) for which the application of subsection (4) would result in an increase in the amount calculated under paragraph 3.71(1)(a); and

  • (b) subsection (4) does not apply to Newfoundland and Labrador in respect of the revenue source referred to in paragraph (z.5) of the definition revenue source in subsection 3.9(1).

• (6) [Repealed, 2013, c. 33, s. 117]